At the present time, with continuous market changes, customer satisfaction and meeting the needs of employees are the most important factors for building managerial systems and implementing of the strategy in many companies. The goal of this paper is to develop a multi-faced knowledge management-based strategy combining analytical and qualitative methods and processes for small and medium enterprises (SMEs) that managers can use to achieve strategic performance goals in their organizations. Various methods with the currently used modern technologies and a developed organizational culture make up the knowledge management system as a method inspired by the leadership, focused primarily on customer satisfaction and meeting the needs of employees. A multi-faced approach for building knowledge management-based strategy in small and medium companies is developed. It is based on practical experience and a research literature background incorporating implemented technologies and tools in quality environment with the usage of knowledge management. This research depicts a proposal of knowledge management-based strategy as a response to the lack of studies that address the knowledge management in building strategy in SME. Furthermore, this approach enhances the existing literature, giving insight in the collection of current business models.
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